8. Problem 7.02 (Yield to Maturity and Future Price) eBook Problem Walk-Through A bond has a $1,000 par value, 8 years to maturity, and a 6% annual coupon and sells for $930. a. What is its yield to maturity (YTM)? Round your answer to two decimal places. % b. Assume that the yield to maturity remains constant for the next four years. What will the price be 4 years from today? Do not round intermediate calculations. Round your answer to the nearest cent. 9. Problem 7.17 (Bond Returns) eBook Problem Walk-Through Last year Janet purchased a $1,000 face value corporate bond with a 12% annual coupon rate and a 25-year maturity. At the time of the purchase, it had an expected yield to maturity of 11.54%. If Janet sold the bond today for $1,064.01, what rate of return would she have earned for the past year Do not round Intermediate calculations. Round your answer to two decimal places. % 5. Valuing semiannual coupon bonds Bonds often pay a coupon twice a year. For the valuation of bonds that make semiannual payments, the number of periods doubles, whereas the amount of cash flow decreases by half. Using the values of cash flows and number of periods, the valuation model is adjusted accordingly, Assume that a $1,000,000 par value, semiannual coupon US Treasury note with three years to maturity has a coupon rate of 3%. The yleld to maturity (YTM) of the bond is 7.70%. Using this information and ignoring the other costs involved, calculate the value of the Treasury note: $552,009.74 O $744,775.04 $1,051,447.12 $876,205.93 discount Based on your calculations and understanding of sd upon bonds, complete the following statement: premium The Tanote described in this problem is selling at a